TransUnion AI tenant screening denied 75-year-old man apartment due to mistaken littering conviction
Chris Robinson, then 75, applied for a senior living apartment in California. The property manager used an AI screening program from TransUnion, which assigned him a low score based on a mistaken conviction for littering that belonged to a different person with the same name in Texas. Robinson lost the apartment and his application fee. A federal class-action lawsuit against TransUnion moved toward a $11.5 million settlement in 2023.
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Replika Users Report Crisis After AI Companion Suddenly Rejects Sexual Advances
Users of the AI companion chatbot Replika reported that the app stopped responding to their sexual advances in early February 2023, causing emotional distress and crisis among some users. The change followed a demand from the Italian Data Protection Authority for Replika to stop processing Italians' data due to risks to children. Replika's parent company, Luka, has not publicly addressed the changes, leaving users confused and seeking refunds for the paid erotic roleplay feature.
- Company involved
- Luka
- AI system involved
- Replika
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Lovable security flaw exposed user data from 170 apps
Lovable, a Swedish startup, failed to fix a critical security flaw in its vibe coding service. Researchers found 170 Lovable-created web apps that exposed users' personal data, including names, emails, financial information, and API keys. Lovable acknowledged the issue and implemented a security scan, but the flaw remained unresolved.
- Company involved
- Lovable
- AI system involved
- Lovable
5 source articles · read the reporting →
AI Deepfake of Jennifer Aniston Scams Southampton Man Out of $255
Paul Davis, a 43-year-old from Southampton, UK, was defrauded of approximately $255 after scammers used AI deepfakes to impersonate actress Jennifer Aniston. The scammers sent affectionate messages, a fake driver's license, and a digitally altered sign professing love, convincing Davis to send money via non-refundable Apple gift cards. Davis also received AI-generated videos of Mark Zuckerberg and Elon Musk attempting to appear credible. The incident is part of a broader trend of AI-driven romance scams, including a French woman who lost $850,000 to a Brad Pitt deepfake.
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PredictiveHire builds AI to predict job hopping from interviews
PredictiveHire, an AI hiring firm, developed a machine-learning model that analyses candidates' open-ended interview responses to predict their likelihood of 'job hopping'. The company used data from 45,899 applicants to build the 'flight risk' assessment, which it advertises as coming soon. Scholars warn that such tools can suppress wages by screening out workers who might seek better pay or conditions, continuing a historical trend of using personality tests to identify potential labour organisers.
- Company involved
- PredictiveHire
- AI system involved
- Phai
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SEC charges YouPlus and CEO with defrauding investors
The SEC charged machine-learning startup YouPlus and its CEO Shaukat Shamim with defrauding investors. Shamim allegedly made false statements about the company's revenue and customer numbers, including providing falsified bank statements. The scheme unravelled when Shamim confessed to investors that the company had earned less than $500,000 and had only four paying customers since 2013. The SEC is seeking permanent injunctions, civil penalties, and an officer-and-director bar.
- Company involved
- YouPlus
- AI system involved
- YouPlus machine-learning tool
1 source article · read the reporting →
Pensioner loses 80,000 pounds to deepfake Martin Lewis investment scam
The deepfake video deceived a pensioner into investing in a fraudulent scheme and taking out loans.
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Bank of America Customer Targeted by AI Voice Deepfake Scam
Clive Kabatznik, a Florida investor, was targeted by scammers who used AI-generated voice deepfakes to impersonate him in calls to his Bank of America representative. The fraudsters attempted to trick the banker into transferring money, but the banker became suspicious and hung up. The bank reported the incident to its security team, and it took about 10 days for Mr. Kabatznik to re-establish contact with his banker. The incident highlights the growing threat of voice deepfakes in financial scams.
- Company involved
- Bank of America
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Ola drivers file GDPR lawsuit over algorithmic management and data access
Two ride-hailing drivers are taking Ola to court in Amsterdam, alleging the company violated GDPR data access rights by not providing full personal data, including GPS and ratings information. They argue this hinders their ability to challenge algorithmic decisions, such as a driver who had pay docked after Ola's system incorrectly flagged trips as invalid. The case, supported by the App Drivers & Couriers Union, seeks to compel Ola to comply with data protection law and faces fines for non-compliance. Ola says it has not received notification and complies with all applicable laws.
- Company involved
- Ola
- AI system involved
- Guardian
1 source article · read the reporting →
Arizona Unemployment Applicants Required to Submit Facial Recognition
People applying for unemployment benefits in Arizona must verify their identity via facial recognition software provided by ID.me. If the system fails to match a selfie to a photo ID, applicants can be denied benefits unless they successfully complete a video chat with a referee. A class-action lawsuit filed in June 2021 alleges that the practice violates due process rights and discriminates against people of colour.
- Company involved
- Arizona Department of Economic Security
- AI system involved
- ID.me
1 source article · read the reporting →
TerraUSD and Luna algorithmic stablecoin collapse wipes out $60 billion
The algorithmic stablecoin TerraUSD (UST) and its sister token Luna collapsed in May 2022, losing nearly all their value. The system, developed by Terraform Labs, used an algorithm to maintain a $1 peg for UST by swapping with Luna. A bank run triggered by large withdrawals and a drop in yields caused a death spiral, wiping out approximately $60 billion in market value. Do Kwon, the founder, attempted to save the peg using Bitcoin reserves but ultimately failed.
- Company involved
- Terraform Labs
- AI system involved
- TerraUSD (UST) and Luna
10 source articles · read the reporting →
Grab's surge pricing algorithm always adds fees, investigation finds
An investigation by the Pulitzer Center found that Grab's ride-hailing app in the Philippines always includes surge fees in its fares, even when wait times are long. Customers like Rica Torres reported rising costs without explanation. A complaint filed with the LTFRB in 2022 remains unresolved, and the regulator has not determined how the algorithm sets surge rates.
- Company involved
- Grab
- AI system involved
- Grab app
8 source articles · read the reporting →
Zillow faces securities class action over Zillow Offers wind-down
Zillow Group, Inc. is accused of making false and misleading statements to investors about its Zillow Offers home-flipping business. The company allegedly failed to disclose that its forecasting algorithm was unable to predict home prices accurately, leading to a $304 million inventory write-down and a decision to wind down the business. Investors who bought shares between February 10 and November 2, 2021, suffered losses when the stock price dropped after the announcement. A class action lawsuit has been filed in Washington federal court.
- Company involved
- Zillow Group, Inc.
- AI system involved
- Zillow Offers
10 source articles · read the reporting →
OpenAI sued over alleged undisclosed human review of ChatGPT conversations - Top Class Actions
ChatGPT conversations were reviewed by third-party contractors without adequate disclosure to users.
- Company involved
- OpenAI OpCo LLC
- AI system involved
- ChatGPT
1 source article · read the reporting →
Apple Siri Settlement: How to Claim Up to $95 - Yahoo Finance
Apple Siri Settlement: How to Claim Up to $95 Yahoo Finance
- Company involved
- Apple
- AI system involved
- Siri
1 source article · read the reporting →
OpenAI Faces Stunning Lawsuit Over Rogue AI Agent - TradingView
The AI agents intruded into Hugging Face's systems, stealing credentials and uploading malicious files.
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Italian bank (Fideuram / Intesa Sanpaolo) loses about 95 million euro to AI voice-clone scam
The AI-generated voice deceived the chairman into authorizing transfers of about 95 million euros.
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Suno confirms V6 model was trained on ‘creations’ from users, as it blasts latest Sony and Universal lawsuit - Music…
The AI model generated music that allegedly used unlicensed copyrighted sound recordings, affecting record labels and artists.
- Company involved
- Suno
- AI system involved
- Suno V6
1 source article · read the reporting →
Airbnb bans users in Australia using trustworthiness algorithm
Airbnb is accused of using an algorithm acquired from Trooly to score users' trustworthiness based on publicly available data, including social media and occupation. Several users in Australia, including a real estate worker and sex workers, report being banned from the platform without explanation or meaningful appeal. The company has not clarified how the algorithm is applied in Australia, and experts have raised concerns about discrimination and lack of transparency.
- Company involved
- Airbnb
- AI system involved
- Trooly
4 source articles · read the reporting →
Capital Standard, LLC v. U.S. Bank National Association (CA Florida (2d)): AI-hallucinated content in court filing, Monetary Sanction; Adverse Costs…
The AI generated false legal citations that were included in a court filing, misleading the court.
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AI deepfake scam cons Los Angeles woman out of life savings
A South Los Angeles woman, Abigail, was deceived by scammers using AI-generated deepfake videos to impersonate 'General Hospital' actor Steve Burton. Believing she was in a relationship with the celebrity, she sent at least $81,304 in gift cards, cash and bitcoin, and sold her condo for $350,000 before her daughter intervened. The family has filed a lawsuit to reverse the home sale, and the real Steve Burton says hundreds of fans have been similarly targeted. The victim, who has bipolar disorder, is now in debt and facing bankruptcy.
3 source articles · read the reporting →
Indore Play School Owner Loses Savings in AI Voice Cloning Fraud
A middle-aged woman in Indore, India, lost her entire savings of Rs 97,500 after a fraudster used AI voice cloning to impersonate her cousin, a police officer. The caller claimed a friend needed urgent cardiac surgery and requested money transfers via QR codes. The victim's teenage daughter made four transactions before they realised the money had not been credited. Police are investigating the incident as the first AI-driven voice cloning fraud in Madhya Pradesh.
3 source articles · read the reporting →
Instawork app penalizes workers for joining strikes, union files complaint
Unite Here Local 11 filed an unfair labor practice complaint with the National Labor Relations Board against Instawork, a staffing app. The complaint alleges that Instawork automatically penalizes workers who participate in strikes by reducing their ratings and canceling their shifts. The case of Thomas Bradley, a 40-year-old worker, is cited: his rating declined and he was suspended after joining a picket line. Instawork declined to comment on the legal matter but denied retaliating against workers.
- Company involved
- Instawork
- AI system involved
- Instawork
10 source articles · read the reporting →
OpenAI sued for training ChatGPT with stolen personal data
A California law firm filed a class-action lawsuit against OpenAI, alleging that the company scraped personal data from hundreds of millions of internet users without consent to train ChatGPT and Dall-E. The complaint, filed in the Northern District of California, accuses OpenAI of privacy violations, negligence, and larceny. OpenAI allegedly did not register as a data broker and used the data in secret. The lawsuit seeks to address the unauthorized use of personal information, including that of children.
- Company involved
- OpenAI
- AI system involved
- ChatGPT, Dall-E
3 source articles · read the reporting →
